The entire second week of June 2012 saw major swings in the United States stock indices. It seemed that every single significant up day was followed by an equally significant down day. By the end of the week the S&P 500 was up 1.3%. It comes as no surprise that this is very close to the same percentage that the index was up on Friday. Mondays loss was followed by Tuesdays major gains. That was all given back on Wednesday before recovering on Thursday. Heading into Friday the major index was basically at break even for the week.
Dollar Store Stocks Accelerate to New Highs
Stocks like Dollar Tree and Family Dollar closed Friday at all time highs. In fact, Dollar Tree has totally avoided the recent decline in the market. While the markets have been down since the beginning of May 2012 Dollar Tree has moved up from around $100 a share to $110. The market psychology is that the debt crisis concerns are causing Americans to cut back and only spend money at the cheapest retail outlets. We have yet to see solid evidence of this but it could be happening more frequently heading into the second half of the year.
Photo by morrissey via Flickr
With many looking for low income money help it stands to reason that some of these individuals are seeking the lowest possible prices on toilet paper, soap and shampoo. Most of these dollar stores have locations in small towns which allows shoppers to spend much less in gas as well.
Mortgage Interest Rates Hit All Time Lows
Today, many American homeowners are thinking about the refinance process as they hope to save a little bit of extra cash. With 30 year fixed refinance mortgage rates under 3.5% most borrowers of money have a chance to significantly drop their home loan payments. Luckily, there are many free mortgage calculators available online that will help these same individual homeowners decide if refinancing is the right idea in June 2012. If a very strong credit history has been built over the last few years there is no reason to think that 3.5% interest rates on a 30 year fixed mortgage rate are not attainable.
If homeowners have refinanced in the last 12 to 18 months it might not be worth it to refinance again. Generally speaking, home loan borrowers will strive to save one full percentage point to save money by refinancing. Once again, the free mortgage calculators available online will help determine the exact interest rate that will cross below the break even point for a homeowner. All banks and financial institutions should be more than happy to help determine this number.